Prices of fodder may go tur dal way

Nagpur: The drought has led to a further increase in rates of fodder in the last three months. Trade sources say that prices of fodder may go tur dal way with bulk dealers wanting to cash in on the shortage by hoarding the stocks. Rates this year began on a higher side due to shortage of cotton, which is used to make seed cakes — a major cattle feed. But eventually it is the demand of cotton seeds which is pulling the rates for cotton. Cotton prices crossed Rs5,000 a quintal recently due to the demand for cotton seeds and not yarn. Even as cotton prices have gone up in India, the international rates have remained stable at 68 cents. It is not the farmer who is benefiting due to high cotton rates as most of the stock has been disposed of. It is the traders’ turn to profit.
At the local fodder stores, cotton seeds with oil are being priced at Rs2,750 a quintal as against Rs2,200 a quintal three months ago. De-oiled cakes are now priced at Rs2,200 a quintal as against Rs1,900 in January. Other types of fodder made out of tur, wheat and rice bran are also up by Rs300 to 400 a quintal. The spurt in rates of cotton seed based fodder has increased the rates of other types of cattle feed, say sources.
Farmers have already begun complaining that the procurement price they get from dairy operators is not enough to cover their expenses. TOI had reported the rising trend in fodder rates on January 15 this year. The rates have further gone up by 25% since then.
Traders are strongly seeing a cartel by bulk dealers who have been piling up stocks in the light of the shortage. Hinganghat, the cotton growing area in Wardha, caters to the de-oiled cake demand for the entire state. The rates in places like drought-hit Marathwada are expected to be much higher due to transportation cost, said a source.
“Dairies offer an average rate of Rs26 a litre but the expenditure comes to around Rs27 to Rs28 a litre. “We have no choice because all the dairies quote the same rate,” said Munbhai Bharwad, a herdsman from Butibori.
NP Hirani of Maharashtra State Cotton Growers Federation said this year the final estimates show that cotton production is down by 50 lakh quintals to 320 lakh quintals. However, he said it is the demand for cotton seeds to make fodder which is driving the rates of cotton now. There is hardly any demand for cotton yarn as there is abundant stock with China and exports are down.
Roshan Kothari, director of Agriculture Produce Marketing Committee (APMC) at Wani, said the seeds are in demand for making fodder. The prices have already reached a peak and this may hit the consumption.